Lawsuit for collection of debt under the supply contract

Late payment for delivered goods is a common problem faced by many entrepreneurs. If your counterparty has not fulfilled its obligations under the supply contract, you can initiate a debt collection procedure through the court.

In which court can such a lawsuit be filed?

In accordance with the current legislation of Ukraine, a claim for debt recovery under a supply contract can be filed with:

• Commercial court, if the plaintiff or defendant is a legal entity or an individual entrepreneur.
• Local general court, if the plaintiff is an individual who is not an entrepreneur.

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In what cases is it possible to file a claim for debt collection under a supply contract?

You can file a debt collection lawsuit if:

1. The defendant did not pay for the delivered goods within the term specified in the contract.
2. The defendant partially paid for the goods.
3. The defendant refused to pay for the goods without legal grounds.

The main mistakes that can be made in the absence of legal support

1. Incorrect determination of the jurisdiction of the case:

• Filing a lawsuit in an incompetent court can lead to a delay in the process or even a refusal to consider the case.
• It is important to correctly determine the jurisdiction of the case, based on the status of the plaintiff and the defendant, as well as the amount of the debt.

2. Improper filing of a claim statement:

• The statement of claim must meet the clear formal requirements established by the Code of Civil Procedure of Ukraine.
• Deficiencies in the application can lead to its return without consideration, which wastes time.
• It is recommended to involve a lawyer to draw up a statement of claim to avoid mistakes.

3. Failure to provide the court with the necessary evidence:

• In order to prove his claims, the plaintiff must provide the court with adequate and admissible evidence.
• These can be contracts, acts of acceptance and transfer of goods, invoices, demand letters, payment instructions, etc.
• Insufficiency or inadequacy of evidence may lead to rejection of the claim.

4. Incorrect calculation of the amount owed:

• The claimant must correctly calculate the amount of the debt, including the principal amount of the debt, interest, fines and other sanctions.
• Errors in the calculation can lead to the failure to receive funds or delay the collection process.
• It is recommended to involve a lawyer to check the calculations.

5. Failure to comply with procedural terms:

• The Code of Criminal Procedure of Ukraine establishes clear deadlines for filing a claim, taking procedural actions, etc.
• Failure to comply with these terms may result in the loss of the right to sue, denial of the claim or delay in the process.
• It is important to know and follow the procedural terms in order not to lose your rights.

To avoid these mistakes, it is recommended to seek help from a qualified lawyer who has experience in debt collection under supply contracts.

Law firm “Prykhodko and partners” will help you:

1. Conduct a legal analysis of your situation.
2. Determine the jurisdiction of the case.
3. Make a statement of claim.
4. Collect and submit the necessary evidence to the court.
5. Represent your interests in court hearings.
6. Get a court decision on debt collection.
7. Monitor the execution of the court decision.

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Pre-trial settlement of a dispute under a supply contract

1. Advantages of pre-trial settlement:

• Saving time and money. Pre-trial settlement of a dispute can be much faster and cheaper than litigation.
• Preservation of business relations. A pre-trial settlement can help preserve the business relationship between the parties, which can be important for future cooperation.
• Process control. The parties can independently determine the terms of settlement of the dispute, which is not always possible in court proceedings.

2. Ways of pre-trial settlement:

• Talks. The parties can independently negotiate to reach an agreement.
• Mediation. With the help of a neutral mediator, the parties can try to find a mutually acceptable solution.
• Arbitration. The parties may agree to consider the dispute by an arbitral tribunal.

3. How to properly negotiate with the debtor:

• Prepare for negotiations. Study your position, determine your minimum and maximum requirements.
• Be polite. Do not threaten or insult the debtor.
• Be prepared to compromise. Do not expect the debtor to comply with all your demands.
• Record the results of the negotiations. Enter into a written agreement in which the agreements reached will be recorded.

The experts of the company “Prykhodko and partners” will help to conduct a pre-trial settlement of the dispute under the supply contract as efficiently as possible and without additional nervous costs.

For a consultation or calculation of the cost of a debt collection claim under a supply contract, fill out the form below.